Financial Data and Key Metrics Changes - Adjusted operating expenses for Q3 2023 totaled $24.4 million, an increase from $20.8 million in the prior year, primarily due to $2.9 million in severance costs [1] - Adjusted EBITDA for Q3 2023 was negative $3.1 million compared to positive $1.8 million in the prior year, primarily due to lower biopreservation media revenue [79] - GAAP net loss was $29.1 million in Q3 2023, compared to $10.3 million in the prior year [54] Business Line Data and Key Metrics Changes - Revenue for the cell processing platform decreased by 26% year-over-year, with a 29% sequential decrease compared to Q2 [75][45] - Biostorage services platform revenue for Q3 was $6.6 million, a decrease of 10% year-over-year, but excluding COVID-related revenue from Q3 2022, revenue increased by 50% [76] - Freezers and Thaw Systems platform revenue for Q3 was $13.4 million, a decrease of 13% over the same period in 2022 [52] Market Data and Key Metrics Changes - The company expects to come in at the low end of its revenue guidance for 2023, projecting total revenue of approximately $144 million [3] - The company noted that macro headwinds and global economic uncertainties, including pharma destocking and a constrained biotech funding environment, have persisted throughout the third quarter [65] Company Strategy and Development Direction - The company is focused on divesting its freezer business to refocus on high-margin cell processing products and biostorage services [48] - The company aims to expand its biostorage capacity in existing locations and explore new strategic sites for further growth [72] - Management is optimistic about the growth potential in the cell and gene therapy market, with a focus on profitable growth [40][42] Management's Comments on Operating Environment and Future Outlook - Management believes that the challenges faced are transient and anticipates a recovery in customer orders as inventory levels normalize [111] - The company is confident that it will emerge stronger and more agile post-divestiture of the freezer business [30] - Management expressed enthusiasm about the opportunities ahead, particularly in the cell and gene therapy market [40] Other Important Information - The company reduced its corporate non-freeze operations headcount by 10% in anticipation of the divestiture [53] - Cash and marketable securities balance at September 30, 2023, was $42.2 million, down from $48.1 million at June 30, 2023 [55] Q&A Session Summary Question: What is the outlook for the fourth quarter? - Management indicated that they feel good about Q4 performance relative to guidance, with expectations for larger distributors and direct customers to recover [82] Question: Can you elaborate on the go-to-market strategy post-freezer sale? - The sales team will focus on scientifically oriented sales strategies for cell processing tools, differing from the capital equipment focus of the freezer sales team [83] Question: How is the freezer divestiture process progressing? - Management stated that the divestiture is likely to close in early 2024, with ongoing discussions with multiple parties [49][114] Question: What is the impact of the current biotech environment on long-term opportunities? - Management believes that the current challenges will not significantly impact their long-term opportunities in cell and gene therapy [139] Question: How will capital be deployed post-divestiture? - The focus will be on investing in product lines that are expected to drive profitable growth [140]

8 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------|-----------------------------------|-----------------------------------|-------|---------------------|---------------------|----------------------------|-------|----------------------------------------|---------------------|---------------|----------------------------| | (In thousands, except share data) | Series A Preferred Stock Shares | Series A Preferred Stock Amount | | Co ...

BioLife Solutions, Inc. (NASDAQ:BLFS) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants Troy Wichterman – Chief Financial Officer Mike Rice – Chairman and Chief Executive Officer Conference Call Participants Jacob Johnson – Stephens Chad Wiatrowski – TD Cowen Amanda Young – KeyBanc Capital Markets Thomas Flaten – Lake Street Operator Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the BioLife Solutions Second Quarter 2023 Shareholders and Analyst ...

Revenue Performance - Product revenue from cell processing products increased by $3.3 million and $7.4 million, or 22% and 24%, for the three and six months ended June 30, 2023, respectively, compared to the same period in 2022[243]. - Product revenue for the three months ended June 30, 2023, was $33.0 million, a decrease of $1.1 million, or 3%, compared to the same period in 2022[268]. - Revenue from storage and storage services increased by $0.4 million, or 258%, for the three months ended June 30, 2023, compared to the same period in 2022[269]. - Service revenue was $4.2 million for the three months ended June 30, 2023, representing an increase of $0.5 million, or 13%, compared to the same period in 2022[270]. - Total revenue for the six months ended June 30, 2023, was $77.2 million, an increase of $0.5 million, or 1%, compared to the same period in 2022[268]. Expenses - General and administrative expenses increased by $3.8 million and $7.1 million, or 32% and 30%, for the three and six months ended June 30, 2023, respectively, compared to the same period in 2022[247]. - Total operating expenses for the three months ended June 30, 2023, were $54.8 million, a decrease of $62.3 million or 53% compared to the same period in 2022[246]. - Cost of product, rental, and service revenue increased by $1.5 million and $0.7 million for the three and six months ended June 30, 2023, or 6% and 1%, respectively, compared to the same periods in 2022[246]. - Research and development expenses increased by $1.4 million, or 41%, for the three months ended June 30, 2023, compared to the same period in 2022[276]. - General and administrative expenses are expected to increase due to infrastructure and costs related to supporting the larger expected enterprise from the growth strategy[274]. - Research and development expenses are expected to increase as the company continues to expand, develop, and refine its product line offerings[252]. Cash Flow and Financial Position - The net increase in cash and cash equivalents for the six months ended June 30, 2023, was $1.93 million, compared to a decrease of $45.65 million in the same period in 2022[259]. - Net cash used by operating activities was $10.4 million during the six months ended June 30, 2023, a decrease from $17.8 million used in the same period in 2022[282]. - Cash, cash equivalents, and available-for-sale securities totaled $48.1 million as of June 30, 2023, down from $64.1 million as of December 31, 2022[298]. Strategic Outlook - The company estimates that annual revenue from each customer application using its Sexton vials and media could range from $500,000 to $2.0 million if approved for large-scale commercial manufacturing[231]. - The company expects sales and marketing expenses to increase as it expands its direct selling efforts to support the expansion of its product line offerings[250]. - The company may pursue additional capital through debt or equity financing for acquisitions or strategic investments, depending on future needs[298]. Internal Controls and Risk Factors - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were not effective due to material weaknesses in internal controls over financial reporting[304]. - Material weaknesses identified include inadequately designed entity-level controls, ineffective risk assessment procedures, and insufficient oversight, impacting the accuracy of consolidated financial statements[304]. - The company does not expect its disclosure controls and procedures to prevent all errors and fraud, indicating a limitation in the effectiveness of its control systems[305]. - There are no material changes to the risk factors described in the Annual Report on Form 10-K for the period ended December 31, 2022, which could affect future performance[309]. Product and Service Development - The company has a diversified portfolio of bioproduction tools and services that focuses on biopreservation, cell processing, and cold-chain transportation[225]. - The company is a leading developer of next-generation cold chain management tools for cell and gene therapies, including cloud-connected shipping containers[238].

BioLife Solutions, Inc. (NASDAQ:BLFS) Q1 2023 Earnings Conference Call May 10, 2023 4:30 PM ET Company Participants Troy Wichterman - CFO Michael Rice - Chairman & CEO Conference Call Participants Jacob Johnson - Stephens Inc. Thomas Flaten - Lake Street Capital Markets Chad Wiatrowski - TD Cowen Carl Byrnes - Northland Capital Markets Yuan Zhi - B. Riley Securities Paul Knight - KeyBanc Capital Markets Operator Hello. My name is Mallory, and I will be your conference operator today. At this time, I would l ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) BioLife Solutions reported a 4% revenue increase to $37.7 million, but net loss widened to $13.7 million due to higher operating expenses, impacting overall financial position [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly to $446.5 million, while total liabilities increased and shareholders' equity declined to $358.1 million, reflecting the period's net loss Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $132,789 | $138,452 | | **Total Assets** | **$446,470** | **$450,229** | | **Total Current Liabilities** | $47,319 | $44,582 | | **Total Liabilities** | $88,363 | $86,041 | | **Total Shareholders' Equity** | **$358,107** | **$364,188** | | **Total Liabilities and Shareholders' Equity** | $446,470 | $450,229 | [Unaudited Condensed Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue increased 4% to $37.7 million, but operating loss widened to $13.6 million and net loss to $13.7 million due to higher operating expenses Q1 2023 vs Q1 2022 Statement of Operations (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Revenue | $37,703 | $36,220 | | Total Operating Expenses | $51,308 | $44,187 | | Operating Loss | $(13,605) | $(7,967) | | Net Loss | $(13,714) | $(7,421) | | Net Loss Per Share (Basic & Diluted) | $(0.32) | $(0.18) | [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss for Q1 2023 was $13.6 million, primarily driven by the net loss, partially offset by other comprehensive income Comprehensive Loss Summary (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net loss | $(13,714) | $(7,421) | | Other comprehensive income (loss) | $145 | $(156) | | **Comprehensive loss** | **$(13,569)** | **$(7,577)** | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity decreased to $358.1 million, primarily due to the $13.7 million net loss, partially offset by stock-based compensation - The primary driver for the decrease in shareholders' equity was the **net loss of $13.7 million** incurred during the quarter[57](index=57&type=chunk) - **Stock-based compensation of $7.4 million** partially offset the reduction in equity caused by the net loss[57](index=57&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $2.7 million, while investing activities provided $2.9 million, resulting in a net cash decrease of $0.3 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,712) | $(7,924) | | Net cash provided by (used in) investing activities | $2,926 | $(2,270) | | Net cash used in financing activities | $(562) | $(181) | | **Net decrease in cash** | **$(348)** | **$(10,375)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and key disclosures, including an immaterial error correction, contingent consideration, debt, and stock-based compensation, confirming sufficient liquidity - The company corrected an immaterial error from prior periods related to uncollected sales taxes, adjusting the March 31, 2022 balance sheet and income statement[107](index=107&type=chunk)[117](index=117&type=chunk) - The fair value of the contingent consideration liability related to the SciSafe acquisition increased to **$5.0 million** as of March 31, 2023, from **$4.3 million** at year-end 2022[15](index=15&type=chunk) - Total debt stood at **$24.9 million** as of March 31, 2023, primarily from a term loan agreement entered into in September 2022[66](index=66&type=chunk)[133](index=133&type=chunk) - Total stock-based compensation expense for Q1 2023 was **$7.4 million**, a notable increase from **$5.4 million** in Q1 2022[176](index=176&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 4% revenue growth to cell processing products, offset by freezer/thaw declines, while increased operating expenses led to a wider loss, though liquidity remains sufficient [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Total revenue increased 4% to $37.7 million, driven by cell processing products, while operating expenses rose significantly due to higher personnel and stock-based compensation costs Revenue by Product Line (in thousands) | Product Line | Q1 2023 | Q1 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Freezer and thaw | $12,381 | $15,335 | $(2,954) | (19)% | | Cell processing | $18,993 | $14,899 | $4,094 | 27% | | Storage and storage services (Product) | $219 | $154 | $65 | 42% | | Storage and storage services (Service) | $3,825 | $3,090 | $735 | 24% | | Storage and storage services (Rental) | $1,639 | $2,742 | $(1,103) | (40)% | | **Total Revenue** | **$37,703** | **$36,220** | **$1,483** | **4%** | - General & Administrative expenses increased by **$3.3 million (29%)** due to increased headcount and professional services fees[219](index=219&type=chunk) - Sales & Marketing expenses rose by **$1.6 million (32%)** primarily from increased personnel expenses including stock-based compensation[221](index=221&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company held $56.9 million in liquid assets, with improved operating cash flow and positive investing cash flow, asserting sufficient liquidity for the next twelve months - The company possessed **$56.9 million** in cash, cash equivalents, and available-for-sale securities as of March 31, 2023[231](index=231&type=chunk)[93](index=93&type=chunk) - The decrease in cash used by operating activities was primarily due to favorable timing in the collection and disbursement of working capital, particularly in accounts receivable, inventories, and accounts payable[232](index=232&type=chunk) - The company has the ability to borrow up to an additional **$30 million** under its 2022 term loan agreement[231](index=231&type=chunk)[93](index=93&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure from interest rates is not material due to fixed-rate debt and an interest rate ceiling, with no material changes in foreign currency risk - Interest rate risk from long-term debt is not considered material due to fixed rates and an interest rate ceiling on the variable component[240](index=240&type=chunk) - There were no material changes in foreign currency exchange risk during the quarter[241](index=241&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective due to ongoing material weaknesses in internal controls over financial reporting, with remediation plans still in progress - Disclosure controls and procedures were deemed ineffective as of the end of the quarter due to ongoing material weaknesses in internal controls[242](index=242&type=chunk) - The identified material weaknesses relate to the control environment, risk assessment, IT logical access, accounting for complex transactions, and indirect tax liabilities[242](index=242&type=chunk) - Remediation plans outlined in the 2022 Form 10-K are still being implemented[245](index=245&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any legal proceedings or claims expected to have a material adverse effect on its operations or financial condition - There are no material legal proceedings pending against the company[247](index=247&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K were reported - No material changes to risk factors were reported for the quarter[248](index=248&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[249](index=249&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and interactive data files - The exhibits include certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act[254](index=254&type=chunk)[255](index=255&type=chunk)

In the course of making our assessment of the effectiveness of internal control over financial reporting as of December 31, 2022, we identified several material weaknesses. Material weaknesses were identified in relation to (i) inappropriately designed entity-level controls impacting the control environment, risk assessment, and monitoring activities to prevent or detect material misstatements to the consolidated financial statements attributed to an insufficient number of qualified resources and inadequate ...

Market Overview and Growth - Active clinical trials show cell therapies at 46%, gene therapies at 18%, and tissue-engineered therapies at 2%[1] - BioLife Solutions anticipates exiting 2024 with a $250 million revenue run rate and 30% adjusted EBITDA[20] - The company has seen rapid growth organically and via M&A, with 2022 unaudited preliminary revenue at $161.9 million[20] Products and Services - BioLife Solutions' biopreservation media is embedded in over 600 customer clinical applications[12] - The company launched 5 new products and 2 new services by the end of 2024[16] - Cell processing solutions are embedded in approximately 700 customer clinical applications[43] Financial Performance and Strategy - Approximately 60% of FY2022 revenue comes from recurring/high margin sources[14] - The company gained 102 new customers, including STEMCELL Technologies, in 2022[9] - BioLife Solutions anticipates approximately 70% recurring, high-margin revenue in 2025[371] Quality and Regulatory - The FDA is hiring 132 new staff in FY 2023 and an additional 96 in FY 2024-27 to meet demand in regulatory reviews and audits[2] - The company has ISO 9001, ISO 20387, FDA registered & inspected facilities since 2011[161]

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $44.3 million, representing a 19% increase and an 18% organic growth compared to Q4 2021, driven by a 35% increase in biopreservation media revenue [14][36] - Adjusted gross margin for Q4 2022 was 32%, up from 17% in Q4 2021, while for the full year 2022, it was 33% compared to 32% in 2021 [16][36] - GAAP operating expenses for Q4 2022 were $93.5 million, including a $40.5 million intangible impairment related to the Global Cooling acquisition, compared to $54.9 million in Q4 2021 [17][38] - Adjusted operating loss for Q4 2022 was $8.2 million, an improvement from a loss of $13.1 million in Q4 2021 [20] Business Line Data and Key Metrics Changes - Cell Processing platform revenue was $20.2 million, with total revenue increasing by 36% and organic revenue increasing by 35% over the same period in 2021 [15] - Freezers and Thaw Systems platform revenue was $17.4 million, with total and organic revenue up 5% over the same period in 2021 [15] - Storage and Storage Services platform revenue was $6.7 million, with both total and organic growth of 14% over the same period in 2021 [35] Market Data and Key Metrics Changes - The company sold and shipped products to 217 new unique customer sites across its three product and service platforms in Q4 2022 [27] - COVID-19-related revenue accounted for approximately 5% of total revenue in Q4 2022, down from 15% in Q4 2021 [14][35] - For the full year 2022, total revenue was $161.8 million, a 36% increase and an organic revenue increase of 38% over 2021 [36] Company Strategy and Development Direction - The company aims to increase recurring high-margin revenue to 70% or more by the end of 2025, currently at about 60% [6][40] - The focus remains on gaining new CGT and biopharma customers, driving adoption of cell processing and storage services platforms, and improving supply chain and quality in the freezers platform [5][8] - The company expects to continue to derive adoption of its solutions in the CGT space, with its cell processing offerings embedded in up to 10 additional candidates that could get approved this year and next [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2024 exit run rate aspirational financial goals of $250 million in revenue, 50 points of adjusted gross margin, and 30 points of adjusted EBITDA margin [57] - The management noted that demand for their portfolio of bioproduction tools and services remains strong, emphasizing that they are still in the early stages of CGT approvals [56] - Management acknowledged supply chain constraints but indicated that they do not expect these to significantly impact their revenue outlook for 2023 [71] Other Important Information - The company will be filing for an automatic extension with the SEC for their 10-K filing due to turnover at the corporate controller position [41] - The cash and marketable securities balance at December 31, 2022, was $64.1 million, compared to $61.7 million at September 30, 2022 [39] Q&A Session Summary Question: Can you help us bridge to the 50% gross margin by Q4 2024? - Management indicated that the bridge to margin aspirational goals is based on optimizing the supply chain, reducing waste, and improving productivity in the plant [46][47] Question: How does the opportunity for allogeneic therapy compare to autologous therapies? - Management believes there will be a significant shift to predominant allogeneic therapies as more biology is understood, which will be a meaningful catalyst for growth [49][50] Question: How much did supply chain constraints affect Q4 performance? - Management acknowledged that there were some supply chain constraints but did not expect them to significantly impact the revenue outlook for 2023 [71] Question: What are the steps being taken to increase higher margin recurring revenue streams? - Management highlighted that the growth will be driven by existing customers and new products and services related to accessories and other non-instrument product lines [87]

BioLife Solutions, Inc. (NASDAQ:BLFS) Q3 2022 Earnings Conference Call November 9, 2022 4:30 PM ET Company Participants Troy Wichterman - Chief Financial Officer Mike Rice - Chairman & Chief Executive Officer Rod de Greef - President & Chief Operating Officer Conference Call Participants Paul Knight - KeyBanc Thomas Flaten - Lake Street Jacob Johnson - Stephens Stephanie Iannetta - Cowen and Company Yuan Zhi - B. Riley Securities Suraj Kalia - Oppenheimer Operator Good afternoon, ladies and gentlemen and th ...